NYMEX Overview: Petroleum Futures Approach Session Highs Following EIA Data -- OPIS
24 January 2024 - 6:05PM
Dow Jones News
Refined product and crude contracts were all hovering near
session highs heading into lunchtime Wednesday following release of
the latest federal inventory and production data showing a large
decline in oil stockpiles and refinery operations.
U.S. crude contracts were rising by nearly $1/bbl in choppy
trading at 11:30 a.m. ET, with the March NYMEX West Texas
Intermediate crude contract ahead $1.07 to $75.44/bbl and April
prices moving $1.04 higher to $75.31/bbl. The front-month contract
is about 50cts off earlier highs.
Globex Brent crude contracts were seeing slightly softer gains,
with the March contract ahead by 85cts to $80.40/bbl while April
prices gained 90cts to $80.01/bbl.
RBOB futures were leading refined product contracts higher, with
the NYMEX February contract moving up 2.86cts to $2.2387/gal,
0.12ct off earlier highs.
The March contract was 2.83cts ahead to $2.2616/gal.
ULSD futures were seeing gains in the neighborhood of a cent per
gallon, with the February contract advancing 1.27cts to $2.7040/gal
while March prices rose 1.52cts to $2.6786/gal.
The Energy Information Administration on Wednesday reported a
9.2 million bbl drop in crude inventories, putting stocks about 5%
below seasonal averages. The recent bout of cold weather across the
U.S. also led to a decline in distillate supplies, which fell by
1.4 million bbl and are now about 4% off seasonal averages.
Gasoline supplies rose by 4.9 million bbl and are 1% over levels
normally seen this time of year.
The increase in gasoline inventories came despite U.S. refinery
utilization falling to 85.5%. The drop from the previous week's
92.6% utilization rate likely reflects the impact of cold weather
on refinery operations, as large declines were seen in the East
Coast, Midwest and Gulf Coast regions.
The decrease in refinery operations was offset by a decline in
gasoline demand, with EIA reporting implied demand of 7.88 million
b/d during the week ending Jan. 19, about 400,000 b/d lower than
the previous week.
The rise in futures prices were also pulling up gasoline and
diesel prices in spot markets around the country. Most markets east
of the Rockies were seeing increases in line with those on the
NYMEX screen, but on the West Coast Los Angeles March CARBOB was
seeing increases topping 18cts/gal following a timing roll that
marks the start of the seasonal RVP transition period.
Diesel prices in most markets were hewing closely to the NYMEX
gains.
Renewable Identification Number prices were on track for a 10th
straight day of declines, with both ethanol-based D6 and
bio-diesel-based D4 RINs each sinking by 6cts in early trading.
Both had hit their lowest levels since 2020 on Tuesday and the
slide appears likely to continue Wednesday.
This content was created by Oil Price Information Service, which
is operated by Dow Jones & Co. OPIS is run independently from
Dow Jones Newswires and The Wall Street Journal.
--Reporting by Steve Cronin, scronin@opisnet.com; Editing by
Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
January 24, 2024 12:50 ET (17:50 GMT)
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